How Hyperliquid Builds Perpetual Futures Oracle Prices
Summary
The document explains how Hyperliquid validators produce spot oracle prices for perpetual futures assets. Validators publish prices every three seconds. Each validator calculates an asset price as a weighted median of spot mid prices from Binance, OKX, Bybit, Kraken, Kucoin, Gate IO, MEXC, and Hyperliquid, using venue-specific weights. The clearinghouse then takes a weighted median of validator submissions, with validator influence determined by stake.
Oracle prices feed into funding-rate calculations and contribute to the mark price used for margining, liquidations, and take-profit or stop-loss triggers. Source inclusion can depend on where an asset’s primary spot liquidity resides: assets with primary liquidity on Hyperliquid may initially omit external sources, while assets whose primary spot liquidity is elsewhere may omit Hyperliquid prices. The document describes the pricing process but gives no thresholds for sufficient liquidity, manipulation safeguards, or empirical measures of oracle accuracy and resilience.
Key ideas
- Validators publish spot oracle prices for each perpetual asset every three seconds.
- Each validator uses a weighted median of selected exchange spot mid prices.
- The clearinghouse combines validator submissions using a stake-weighted median.
- Oracle values inform funding rates and contribute to the mark price used for risk and order triggers.
- Spot source inclusion depends on where the asset’s primary liquidity is located.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.